Q: Valuation: At a 2.80can div I value the stock at 40 about 7.1%. So is it under valued or just asset growth misunderstood ie add value within its now unrestricted markets? Its oil provide cash to amp up non oil feeders.
5i Research Answer:
It is a new listing, and many shareholders are likely selling their 'free' shares. We thought the dividend should be set lower so it could be increased, but so far so good, and the stock has done well since listing. We think it could continue to do well as investors understand its strategy more and realize the dividend is likely secure.